EMU: IFO improves further, driven by expectations

In June, the German IFO indicator came out slightly better than expected. The headline index rose for the third consecutive month from 84.2 to 85.9, while the consensus was looking for a figure of 85.0. The breakdown shows that the improvement was driven by an increase in the expectations sub-index (89.5 from 86.0), while the current assessment dropped (82.4 from 82.5) to a new cyclical low. The unexpected deterioration in the current assessment is a bit disappointing and in the coming months,